A fixed cost is one that:

Question

Quizplus · Accepted Answer

A fixed cost remains constant in total within the relevant production range, regardless of the volume of production. Although the cost per unit may change with changes in production level, the total cost will remain the same. Therefore, option C is the correct answer. Options A and D are incorrect because fixed costs do not necessarily have to do with inflation or volume of production. Option B is also incorrect because some fixed costs may be expressed on a per-unit basis, but they will still remain constant in total regardless of the volume of production.

A Fixed Cost Is One That